Best and Worst States for Taxes

Connecticut residents annually pay an average $9,099 in state and local taxes, or 31% more than the national average according to a new report.

The financial site WalletHub ranks the state 48th in the country for its state and local tax burden. Only Nebraska, California, and New York (where taxpayers pay an average $9,718) ranked below Connecticut.

And, when adjusted for cost of living, Connecticut fell to 49th among the 50 states and the District of Columbia.

Wyoming, where residents pay an average $2,365 annually (two-thirds less than the national average), has the lowest state and local tax burden in the country. The 10 best states:

Wyoming, Alaska, Nevada, Florida, South Dakota, Washington, and Texas have no state income tax.

Delaware is among the five states with the lowest real estate, car, sales, and alcohol taxes; Alaska has the lowest vehicle taxes and has one of the five lowest fuel and sales taxes.

The states with the worst per capita tax burdens:

New York, $9,178

California, $9,509

Nebraska, $9,450

Connecticut, $9,099

Illinois, $9,006

Wisconsin, $8,975

Vermont, $8,838

New Jersey, $8,830

Iowa, $8,788

Maine, $8,622

Economic mobility

State and local tax burdens directly impact economic mobility--the ability to move up and down the income ladder--according to Harvard and Berkeley university researchers collaborating on The Equality of Opportunity Project.

They found “a significant correlation between both measures of mobility and local tax rates.”